What are ultra low price stocks? Why do people keep chasing it?

There's a popular saying right now that you're looking for opportunities in ultra-low priced stocks. Now many analysts say that the ultra-low price stocks actually refer to the absolute price of 2 3 yuan in the area. Most of these ** are actually junk stocks, and many are ST stocks.

The reason why these stocks have fallen so badly is because there is no performance support, the profitability of assets has been low for a long time, there is no growth, and the cash payout rate is low. In fact, as long as you take a closer look, even if the stock price of these so-called super-falling stocks reaches the current position of 2 3 yuan, the price-earnings ratio is still far higher than the average price-earnings ratio of the market; In addition, the same is true for many so-called technology stocks, whose main business is not outstanding and has a low rate of return. The only reason for speculation in these stocks is the "concept" in the illusion, and the main force resident in it is to use this point to repeatedly operate, constantly create hot spots, and hunt down batch after batch of ** customers.

Garbage stocks like Shanghai Merlin and Tianshan Textile are typical of the so-called "ultra-low price"! After so many years, the main force of it dares to operate so recklessly and repeatedly, which also shows from the side that the management is incompetent in supervision, or the management does not care at all.

These so-called ultra-low price stocks are only relatively over-priced compared to the original "inflated", however, for assets without real profitability, they are simply "overvalued", let alone over-falling. The real over-fall is to be underestimated in a short period of time, not for a long time and in a large area. Wake up, kind small and medium-sized "investors".

Over-falling low price, as the name suggests, must meet two conditions: 1. Over-falling; 2. Low price. That is to say, the intrinsic value of ** is higher than the market price, and of course there is hope for it to rise.

The low price ** is sought after by shareholders because after the previous continuous sharp fall, many stock prices have been cut in half, or even more, and many ** are seriously trapped and have fewer profits, which provides opportunities for market makers and some funds, can be pulled up by the control of the low level, even if it is pulled by 50%, many ** are still seriously trapped, and will not produce selling pressure, therefore, some free capital and Zhuang stocks took advantage of the environment to start the speculation of junk stocks.

However, the speculation of junk stocks lacks the support of fundamentals, and the nature of Chensong's funds is mainly short-term speculation or self-help, therefore, the risk of participation is large, and the difficulty of making profits is high, so it is not recommended to participate in general, even if you participate, you should take a light position, set a good stop loss, and do not ** at a high level, in case of delisting of junk stocks and more bearish trapping.

1. When you need to, here to tell you a characteristic, the starting point of the bull market is generally opened with junk stocks, the priority is less than 5 yuan, after they are raised to more than 10 yuan, and then more than 10 yuan ** to 20 yuan, and so on;

2. In the earlier junk stocks, policy factors dominated；Obviously, the previous hedging of white horse stocks and blue chips in the intraday has been very serious, and a considerable number of bears have been smothered in it; In this case, the multi-party will not take the initiative to help the short side untie;

3. In the case that both the long and short sides give up the blue chip and white horse positionsThe profit-seeking attributes of floating capital and arbitrage funds determine that they urgently need to find a breakthrough in the weakness, and the favorable policy at this time directly gives them a shot in the arm, that is, speculating in junk stocks and penny stocks;

4. When Zheng was chasing junk stocks and penny stocks with free capital and arbitrage funds, the gambling mentality of the first was ignited, market sentiment began to activate, and many funds began to rush into the market for the purpose of short-term profits; Of course, the sectors chosen are junk stocks and penny stocks, which is one of the main reasons why the best in this sector can rise quickly and continue to rise.

The reason why the low price is stupid and noisy is sought after by shareholders is the low price, which is less capital for some small people, and his advantage is the low price-to-book ratio, which reflects the market's evaluation of the company's asset quality.

Mainly because such a ** is particularly cheap, and you can buy a lot at one time without distress, so it will be sought after by shareholders.

Mainly because you can make money like this, and the low price will not be particularly distressing when you are in **.

Penny stocks are one of the terms.

It is generally believed that ** below 10 yuan is a penny stock.

Advantage 1: Absolutely** low.

From the perspective of returns, the rate of return on buying penny stocks is not necessarily worse than that of ** stocks. Especially in the ** this year, the penny stock Puyou Yuquan has performed well. For example, if you have 50,000 yuan in hand, and on the last day of May, at the **price** Bank of China (601988, stock bar) (601988), you can buy a total of 14,000 shares, and the idle funds are 20 yuan.

As of June 24 (this Wednesday), Bank of China's ** price is yuan, and the floating profit on investment will be 10,000 yuan (excluding commission and stamp duty factors).

Advantage 2: Low price-to-book ratio.

Generally speaking, net assets are a "bottom line" of stock prices, and when the market has a large-scale net break, it is often a sign that it is about to bottom, on the contrary, once the market enters a bull market, the price-to-book ratio will also rise. At 6124 points, the average price-to-book ratio of the two cities exceeded 7 times.

Advantage 3: The over-falling effect is large.

But after nearly 8 months, some of the over-falling ** has a large increase, as of June 24, when the decline of more than 90% of Yunnan Copper (000878, stock bar) (000878) has been **223%, from less than 7 yuan to 21 yuan. Another example is Jiaozuo Wanfang (000612, stock bar) (000612) and Zhuzhi Group (600691), which have risen by more than 200%.

Advantage 4: The right filling effect is strong, and He Yan is good.

Suning Electric (002024) was transferred from the high transfer in April this year, and the right to fill in **. The so-called filling rights refers to the fact that ** is speculated to the pre-ex-rights ** in a period of time after the ex-rights and dividends.

Low-priced stocks are a few dollars of **, for example, the reputation of Magang stocks is only more than 3 yuan, and the basic Xinxuling below 10 yuan are slippery low-priced stocks. More than a dozen yuan are mid-priced stocks. Naturally, it is the ** stock that is high!

With the development of **, its huge ups and downs have created many new terms. Ultra-low stocks. As the name suggests, a low or continuous decline can be called an ultra-low stock. But the term really came up in September 2008.